The Lannebo Mixfond rose 1.8 percent in May, underperforming its benchmark index which climbed 2.1 percent. Since the turn of the year, the fund has returned 2.0 percent, trailing the index gain of 4.5 percent. This is according to a monthly report by fund managers Katarina Ponsbach Carlsson and Peter Lagerlöf.

The managers initially noted that global equity markets continued to rally in May, led by Asian markets. In particular, AI-related plays benefited from the surging demand for data memory capacity.

Nordic markets saw more subdued positive performance due to limited exposure to such sectors. The Danish market performed strongest, while the Norwegian market retreated slightly. Meanwhile, small caps outperformed large caps.

'Corporate earnings continue to grow faster than expected despite the uncertain security situation. Earnings for companies in a world index are expected to increase by up to 20 percent this year, which is far more than was anticipated at the start of the year. This is a result of both sharply rising semiconductor prices and higher oil prices, which benefit oil producers', the managers wrote.

Despite geopolitical unrest, the global economy is described as developing well, and there are no signs of a dramatic shift in macro data, according to the managers.

'Manufacturing optimism is at its highest level in several years, and household consumption continues to grow in most countries. The European economy is struggling to gain momentum, but it is structural issues rather than cyclical ones that are hampering growth.'

At the same time, many European countries are being affected by higher oil and gas prices, as a significant dependence on fossil fuels persists in several regions. Rising oil prices have caused inflation to tick up and remain above target in most countries, which has increased expectations for interest rate hikes.

During the month, the equity allocation in the fund increased slightly to 68 percent, driven by strong market performance and the purchase of more defensive holdings. The fund re-entered Astra Zeneca and Assa Abloy after valuations retreated from previous highs. Additionally, the holding in Sagax was reduced, as was the exposure to banks.

'We are diversifying risks within the fund and maintain broad sector exposure. Banks continue to trade at attractive valuations. Furthermore, the fund has a relatively large exposure to smaller companies where we see significant price potential.'

The three largest equity holdings in the fund's portfolio at month-end were Investor, Alfa Laval, and Handelsbanken, with portfolio weights of 4.0, 4.0, and 3.9 percent, respectively.

Sweden was the largest geographical market with 71.1 percent of the allocation, followed by Finland and Norway at 9.4 and 9.3 percent, respectively.

Lannebo Mixfond, %May, 2026
Fund MTD, change in percent1.8
Index MTD, change in percent2.1
Fund YTD, change in percent2.0
Index YTD, change in percent4.5